Regional Water System
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Texoma Raw Water Pipeline No. 2 and Texoma Raw Water Pipeline to Leonard Water Treatment Plant (WTP) Pipeline; Construction Manager-at-Risk Award Construction Management Services Agreement; Project No. 101-0633-23 and No. 101-0642-24
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SUBJECT
recommendation
Authorize funding in the amount of $4,163,774 to Garney Companies, Inc. for the CMAR services during preconstruction and procurement process to the Construction Manager-at-Risk (CMAR) for the Texoma Raw Water Pipeline No. 2 and Texoma Raw Water Pipeline to Leonard Water Treatment Plant (WTP) Pipeline projects.
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PURPOSE
The use of Construction Manager at-Risk (CMAR) project delivery method will provide the best value to NTMWD and in this case the opportunity to combine these two similar capital projects to leverage the advantages of early procurement of certain long lead time materials and equipment. This allows the procurement process to progress concurrently with the detailed design, helping to compress the project schedule.
RECOMMENDATION
The Executive Director and NTMWD staff recommend the Board of Directors authorize a CMAR agreement as follows:
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CMAR: |
Garney Companies, Inc. |
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Scope: |
CMAR Services |
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Project: |
No. 101-0633-23 Texoma Raw Water Pipeline No. 2, and No. 101-0642-24 Texoma Raw Water Pipeline to Leonard WTP Pipeline |
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Amount: |
Project No. 101-0633-23 (PN 633) - $3,131,830.50 Project No. 101-0642-24 (PN 642) - $1,031,943.50 Total - $4,163,774 |
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Committee: |
This will be an item on the October 22, 2025, Water Committee meeting agenda |
DRIVER(S) FOR THIS PROJECT
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Strategic Objective: |
1.1 High Quality Services 1.4 Reliable and Resilient System Capacity |
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☐ Regulatory Compliance |
☐ Asset Condition |
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☒ Capacity |
☒ Redundancy/Resiliency |
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☐ Relocation or External Requests |
☐ Operational Efficiency |
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☐ Safety |
☐ Administrative |
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☐ Policy |
☐ Other _____________ |
BACKGROUND
The use of the Construction Manager At-Risk (CMAR) project delivery method has been selected and authorized for the Texoma Raw Water Pipeline No. 2 and Texoma Raw Water Pipeline to Leonard WTP Pipeline as a single construction contract. This method was chosen due to its ability to manage the size and complexity of the project effectively. By involving the CMAR early in the design phase, NTMWD can achieve cost and time savings through value engineering, accurate cost estimates, and efficient scheduling. This collaborative approach also reduces risks of budget overruns and delays by promoting proactive problem-solving. Additionally, the CMAR method ensures improved consistency and quality of work through oversight and coordination between the design and construction teams.
PROJECT PURPOSE
The Texoma Raw Water Pipeline No. 2 increases the capacity of raw water transfer from Lake Texoma to the NTMWD treatment facilities and to the Greater Texoma Utility Authority (GTUA) customer City of Sherman. To meet projected future demand, a new parallel 84-inch transmission line from Lake Texoma to the Howe Balancing Reservoir is needed by 2029. With the existing 72-inch line, the proposed 84-inch parallel line, and a separate Texoma Pump Station Improvements project, the District will have the ability to deliver up to 220 million gallons per day (MGD) of raw water from Lake Texoma, 120 MGD would be conveyed to the Wylie WTP complex and approximately 70 MGD of additional flow would be diverted to the Leonard WTP, and approximately 30 MGD delivered the City of Sherman.
To increase the utilization of raw water rights, water from Lake Texoma will be blended with raw water from Bois d’Arc Lake at the Leonard Water Treatment Plant Facility. This additional supply will fully utilize the planned future treatment plant capacity of 280 MGD. Texoma to Leonard Raw Water Pipeline will also be an 84-inch gravity line connecting to the existing Texoma Raw Water Pipeline south of Howe Reservoir to convey water to Leonard Terminal Storage Reservoirs.
• In December 2023, the Board approved Administrative Memorandum No. 23-5970 authorizing preliminary engineering design for the Texoma Raw Water Pipeline No. 2 project. Preliminary engineering analysis has identified a proposed 27-mile route within the existing pipeline corridor and within a rerouted section. In January 2025, Administrative Memorandum No. 25-6098 authorized final engineering to Black & Veatch Corporation.
• In January 2024, the Board approved Administrative Memorandum No. 24-5978 authorizing preliminary engineering design for the Texoma Raw Water Pipeline to Leonard WTP Pipeline project to transport approximately 70 MGD of Texoma raw water through an 11-mile 84-inch pipeline to the Leonard WTP Balancing Reservoir. In January 2025, Administrative Memorandum No. 25-6095 awarded final engineering to Freese and Nichols, Inc.
• In November 2024, the Board approved Consent Agenda Item No. 24C-44, authorizing the use of the CMAR project delivery method for these two pipelines as a single construction contract.
• A two-step process was utilized for the selection of the CMAR: Received Statements of Qualifications (SOQ) in April 2025 and received Proposals in June 2025 from one firm.
• During the selection process prospective CMAR teams are required to submit a fee schedule and fixed costs based on an estimated cost of construction. That fee schedule establishes future costs associated with fixed and time sensitive costs that are typically part of general conditions. Those costs are paid monthly and on time and material basis during the construction phase. The estimated amounts shown are for evaluation of proposals and the final total will depend on the final value of constructed work and the duration of the contract.
• Garney Companies, Inc. was selected as the best value proposer.
• The current Opinion of Probable Construction Cost from the CMAR is $588M.
CMAR SERVICES TO BE FUNDED THROUGH THIS AUTHORIZATION
• Pre-Construction services including:
o Project management
o Cost Model
o Quality management
o Risk management registry
• Pre-Construction additional services, including:
o Value engineering studies
o Start-up and commissioning program
o Regulatory agency coordination
• Procurement Basic Services
o Assemble work packages
o Advertise for bid
o Pre-bid conferences and addenda
o Opening and evaluating bids
o Guaranteed Maximum Price (GMP) development
• Procurement Funding Source Specific Requirements and Additional Services
o Texas Water Development Board (TWDB) requirements or other funding source
o Pre-qualification of bidders
o Additional work packages
o Regulatory agency coordination
ESTIMATED FUTURE CMAR FEES
• Construction Support Costs
o Fixed Construction Support Costs (Mobilization, Demobilization, Personnel, etc.) = $3,701,738.83
o Fixed Construction Support Costs (Bonds and Insurance) = $14,895,578.40
o Time Sensitive Construction Support Costs (Offices, Site Security, Office Staff, Supplies, Vehicles, etc.) = $21,987,370.46
• CMAR Services Fee
o 5.0% of Cost of Work - Pipe Supply Only
o 7.5% of Cost of Work - Excluding Pipe Supply
• CMAR Contingency
o To be determined for each work authorization based on a detailed risk register
CMAR SERVICES AND FEES (CURRENT REQUEST)
Description Amount PN 633 Amount PN 642
Preconstruction Basic Services $1,723,827.00 $574,609.00
Preconstruction Additional Services $299,053.50 $99,684.50
Procurement Basic Services $686,981.25 $228,993.75
Procurement Funding Source Specific $421,968.75 $128,656.25
Requirements and Procurement Additional
Services
Requested Amount Per Project $3,131,830.50 $1,031,943.50
Total Requested Amount $4,163,774.00
FUNDING
Funding in the amount of $4,163,774 to Garney Companies Inc. is to be made available from the Regional Water System Capital Improvement Fund.